Know the Big Industries for Your Green Investing

Navigating the financial market is hard, especially if you want to emphasize the greener side of your investments. It helps to know what the big markets are for green investing so that you can narrow down where you're best off putting your money.

Here are the biggest sectors to start researching for 2009. But remember, don't just dive in—Research, Research, Research. And don't put all your eggs in one basket.

Big green markets for 2009:

1. Renewable energy
   Solar, Wind, Tidal and Geothermal are big contenders as alternatives to fossil fuels. As clean energy goes on the rise, it will be these areas that get a lot of attention. Highly efficient solar cells and solar concentration, sturdy wind turbines that perform well even at low speeds as well as urban turbines, wave energy generation in oceans and rivers, and geothermal energy will be given good hard looks as trustworthy and affordable alternative energy sources. Renewable energy also means fuel ? biofuels from algae and cellulosic ethanol (as opposed to ethanol from crops) will also likely be getting attention in the upcoming year.


2. Smart Grid
   Renovating the power grid to accommodate renewable energy and to allow utilities to monitor energy use and implement real-time pricing is happening, and will continue to grow. The smart grid isn't a futuristic hope, it's a necessity that will arrive in the near future. And there are loads of companies hopping on board to devise software and hardware to help homes, businesses and utilities interface with one another. From home automation tools to smart meters to data tracking, this is a big and growing market.


3. Water conservation
   Water is going to be an increasingly significant issue. As supplies decrease, companies working with water conservation and desalination technologies will gain clout. Paying attention to everything from agriculture to drinking water to gray water systems is a good idea for gathering up possible investment opportunities.


4. Transportation
   Clean transportation is still a big issue. Electric cars and the infrastructure to support them are going to continue to get a lot of attention. Specifically for electric vehicles, battery research and development and manufacturing will be important factors to keep an eye on. Electric vehicle growth also ties back into the smart grid and its ability to handle large-scale car charging.


5. CleanTech for Energy Efficiency
   The clean technology sector is massive and dovetails with a lot of industries. However, one aspect to keep watch on is clean technology developments for energy efficiency, especially for businesses. More efficient computers, data centers, manufacturing facilities, and so on are key to cutting down business costs. Companies focused on developing the hardware and software tools these businesses need to maximize efficiency and minimize costs will be important players throughout the year.

More on Green Investing:
How Alternative Energy Mutual Funds Work
Quick Green Investing Tips for 2009
6 Alternative Green Investment Strategies for 2009
Green Tech Investments Have Positive Outlook for 2009
How to Go Green: Investing